Which of the following is a risk that may affect the revenue and cash collection process?
A)Transactions may have been recorded by the wrong company.
B)Invalid transactions may have been omitted from the records.
C)Transactions may be recorded in the wrong amount.
D)Quantities of products returned are often difficult to determine.

Question

Quizplus · Accepted Answer

If transactions are recorded in the wrong amount, it may affect the accuracy of revenue and cash collection process, which in turn can lead to discrepancies in financial statements and cash flow. The other options do not directly impact the revenue and cash collection process.

Which of the Following Is a Risk That May Affect